Argument against protectionist measures In the United States, it is not free trade that has led to the decline in wages as result of less demand for low skilled workers it is the capital investments in labor-saving technologies like robotics and increasing worker productivity that have led to the large majority of the factory job losses (American Institute of Enterprise 2017). Manufacturing is growing and the sector continues to remain a large and important part of the U.S. economy, employment in the manufacturing sector has deteriorated for some time primarily due to growth in productivity in manufacturing production process (ibid). Although trade is one of the factors that has contributed to change in the manufacturing sector in terms of
Hence, when it announces the acquisition, firm value may drop simply because investors conclude that the market is no longer growing. The acquisition in this case does not destroy value; it just signals the stagnant state of the market. Why do sellers earn higher return? Buying firms are typically larger than selling firms. In many mergers there are so much larger that even substantial net benefits would not show up clearly in the buyer’s share price.
Another things that made African states not to benefit most in the trade is that, they export raw material or minerals because they lack means to process those raw material into finished goods and services. Therefore, those raw materials that are being exported, the African states import them back as manufactured and finished goods and they import them at higher cost compared to the profit they received when exporting
One of the cons to increasing the minimum wage is that it helps larger corporations and hurts smaller businesses, therefore, competition is decreased. The bigger companies use raising wages acts as a barrier to entry to new business entering the market and create a monopoly for larger companies who have more profits to afford the increase. An example of this is Wal-Mart, who can afford to pay employees nine dollars and twenty cents an hour but a little store such as Meijer 's who does not make as much profit would limit their hiring of new employees and would cut hours to compensate. A family store might decide that the cost of entering the market is too high to endure as they build up their clientele and develop their business they decide not
(Boaduo, 2008) SAPs demanded African countries to reduce public expenditure and tightening monetary supply that worsened the existing precarious socio-economic status of Africans. Africans lost their jobs, the economic growth declined, the debt burden increased and accelerated capital
• Lower Government Acquisitions: Economic growth makes higher assessment incomes and there is less need to use funds on profits. For example, unemployment benefits. Subsequently, it serves to diminish obtaining. Likewise, it assumes a part in decreasing obligation to GDP degrees. DISADVANTAGES Long term financial development puts an awful effect on the inhabitants of any nation.
This is because the barriers to entry into the industry are relatively high for new firms and that the Average Total Cost (ATC) and Average Variable Cost (AVC) for new firms are relatively high compared to the two large soft drink manufacturers because of economies of scale. Additionally, not many firms in their industry produced the same or identical product to make the industry competitive and the information is not freely available because the recipe in Coke’s case is not public record. Therefore, the assumption that Coca-Cola and Pepsi are most likely not to be produced in a perfectly competitive industry is
The tax is an extra cost for suppliers and so they will decide to decrease the amount of junk food supplied moving the supply curve to the left. If the supply decrease there will be excess of demand and there will be an increase in prices leading to a decrease in the demand till a new equilibrium is reached. Furthermore there will be a division on the payment of the
Firstly, globalization only serves the interests of developed countries like the US, European countries, China, Singapore more than developing countries such as Vietnam, Thailand, Africa (Is globalisation, n.d.). According to Lianna Amirkhayan (n.d.), the uneven distribution makes a big difference in income between developed and developing countries. The rich countries still maintain their wealth which even double rich, compared to developing countries. Secondly, globalization creates a moving wave among people in developing countries. They move to other countries to find a better chance to work.
More versus less industrially developed areas :the parts of the world that have greater access to modern technology are the USA , Europe and northern Asia . these areas mostly consist of developed countries ,areas where access is more restricted are in some parts of Africa, India and south Asia . these are areas that consist of countries that are less industrially developed. This is possibly because the less developed countries are having to use their financial resources to provide more important services and do not have the funds available to concentrate